Harrison ford company has been approached by a new customer with an offer to purchase 10,000 units of its model ij4 at a price of $5 each. the new customer is geographically separated from the company's other customers, and existing sales would not be affected. harrison normally produces 75,000 units of ij4 per year but only plans to produce and sell 60,000 in the coming year. the normal sales price is $12 per unit. unit cost information for the normal level of activity is as follows: fixed overhead will not be affected by whether or not the special order is accepted.

direct materials $1.75
direct labor 2.50
variable overhead 1.50
fixed overhead 3.25
total $9.00

what are the relevant costs and benefits of the two alternatives (accept or reject the special order)?

R& m chatelaine is one of the largest tax-preparation firms in the united states. it wants to acquire the tax experts, a smaller rival. after the merger, chatelaine will be one of the two largest income-tax preparers in the u.s. market. what should chatelaine include in its acquisition plans? it should refocus its attention from the national to the international market. in addition to acquiring the tax experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business. chatelaine will need to explain to the federal trade commission how the acquisition will not result in an increase in prices for consumers. chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.

In june, one of the processinthe assembly department started the month with 25,000 units in its beginning work in process inventory. an additional 310,000 units were transferred in from the prior department during the month to begin processing in the assembly department. there were 30,000 units completed and transferred to the next processing department during the month. how many units the assembly department started the month with 25,000 units in its beginning work in process inventory. an additional 310,000 units were transferred in from the prior department during the month to begin processing in the assembly department. there were 30,000 units completed and transferred to the next processing department during the month. how many units were in its ending work in process inventory

Which of the following is not a factor to consider when deciding whether to accept a special order? whether this order will hurt the brand name of the company whether other potential orders would be more profitable whether additional fixed costs would need to be incurred whether the offered price is sufficient to cover prime costs and fixed overhead allocated all of the above